Good morning folks,

I'm feeling slightly better off this morning, after numbers from Volvere (LON:VLE). But there are plenty of other stories to discuss, and I haven't forgotten about stories missed on Tuesday. 



Volvere (LON:VLE)

  • Share price: 1250p (+9%)
  • No. of shares: 1.8 million
  • Market cap: £23 million

Half-year Report

(In case anybody was not aware, I have a long position in VLE.)

Volvere has published some decent interims - happy days.

This is an investment company which currently has just a single operating subsidiary, Shire Foods, after all the other subsidiaries were sold for handsome profits.

Shire, in Leamington Spa, seems to be doing nicely. I attended Volvere's AGM this year, and reviewed my notes from it this morning. At the AGM, Volvere management talked about Shire's capacity constraints and its expansion push in terms of production lines and cooking vessels.

The H1 revenue increase at Shire is even better than I would have hoped for, at 39%. This helped to offset margin pressure from raw materials and wage inflation. The overall jump in Shire's adjusted PBT was from a £170k loss to a £240k gain.

Shire supplies frozen food to discount supermarkets, and this is a nice sector to be in right now (e.g. Aldi expansion).

As far as developing its product portfolio is concerned, Shire is focused on the vegan segment - another growth area:

We are actively responding to the increased demand for vegan products and have agreed several new products with retail customers.  In addition, we have launched our own brand - Naughty Vegan - into the foodservice market.

Time for a few calculations.

Last year, Shire produced an adjusted PBT result in H2 of about £1 million (based on a £170k loss in H1 and an £850k profit for the full year).

If it matches that this year, it is on course for adjusted PBT of £1.24 million. But given the strength of H1 this year, the end result could (should?) be materially better than this. Maybe £1.5 million is a reasonable guess. Volvere says that additional opportunities…

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